Why It's Worth Getting to Know Your Younger Customers and Employees
By: Michael Miller, State Director Minnesota, Wisconsin, and Iowa
Lazy. Narcissistic. Entitled. The way they’re often portrayed in the media, it’s no wonder that Millennials sometimes get a bad rap. And while there are of course individual exceptions, these broad generalizations about Millennials simply aren’t true. There’s a lot to like about the Millennial generation as customers and employees. Which is good, because they’re quickly dominating the marketplace and the workplace.
A Look at Millennials
A Millennial is one of 71 million individuals born between 1981 and 1996. Most Millennials are the children of Baby Boomers, and the Pew Research Center estimates Millennials will surpass Baby Boomers in population by 2019.
Millennials grew up using technology. The older ones remember a time when the internet didn’t exist; the younger ones don’t. Millennials came of age during the Great Recession and either experienced financial challenges themselves or watched their parents struggle (or both). Most who earned college degrees have student loan debt. All of these factors contribute to the way Millennials buy insurance and how they approach employment.
Selling to Millennials
Experts project Millennials will increase spending by 15 percent annually over the next few years, while Baby Boomers will increase spending by just 5 percent. This is a great opportunity for your agency if you know how to sell to the younger generation.
Make It Easy
Amazon invented one-click ordering for a reason, and it had nothing to do with Baby Boomers. Millennials value an efficient, streamlined buying process. That’s why your agency must have an online quoting system that makes it easy to shop for insurance without providing pages of information. It also pays to provide policy documents electronically. Make sure your carriers offer automatic withdrawal for payments, too.
Expand Communication Options
Millennials prefer to communicate via email, text, and social media and consider talking with people on the phone the nuclear option. So how do you build customer relationships with Millennials? Reach out over email or by text to set up in-person appointments. Have a presence on social media and interact with your customers there regularly.
Show Your Value
You know you face lots of competition online from the Geicos of our industry. Take a look through their websites and you’ll see how easy these companies make it to quote a policy and how little information they provide to buyers so they can make informed purchasing decisions. Millennials may buy online, but they also tend to do their research and read reviews. Make your website a resource for potential customers and ask your current customers to review your agency online. A few positive reviews can turn shopping Millennials into buyers.
Yes, it’s possible to work with Millennials without them driving you crazy (at least most of the time). And with 10,000 Baby Boomers turning 65 every day, you’ll need to work with Millennials to continue to grow your agency.
Take Advantage of Their Tech Skills
Does the idea of incorporating social media, texting, email, and online quoting into your agency fill you with dread? Then hire a Millennial! Millennials are digital natives, and communicating online comes naturally to most of them. Millennial producers and CSRs will be comfortable communicating over email and text. They may also be able to help you add valuable content to your website and interact with customers on social media platforms for you.
Understand What Motivates Them
Having grown up during the Great Recession, many Millennials are simultaneously seeking to make more money and wary of traditional retirement benefits. They saw these products fail their parents and are cautious about experiencing similar financial pain. Working at an insurance agency on commission may be the perfect set-up for self-motivated Millennials. But don’t rely on your 401(k) plan to attract and keep Millennial employees. Instead, show them how selling insurance helps them protect families and businesses (Millennials generally want to feel like their work is making a difference). Then, give them some flexibility in where and when they work. Many agency tasks can be performed remotely.
Remember That Everyone Wants to Hire Them
Millennials may work a little differently from Gen X and the Baby Boomers, but they still work hard, have expert tech skills, and bring energy and new ideas to their workplaces. This makes them highly attractive to employers. If your agency doesn’t hire the Millennial who walks through your door, your competitor might.
Soon, the Millennials will outnumber Baby Boomers. You fail to market to and hire the younger generation at our agency’s peril. With a little knowledge and some flexibility, you’ll find that marketing to and working with Millennials is easier than you think.
Smart Choice® Resources for Attracting Millennials
Smart Choice® offers several resources to help your agency attract Millennial buyers and employees, including:
- Affordable, professionally designed websites with the Smart Choice® Web Builder
- Deals on three online rating and agency management systems to streamline agency processes
- Online continuing education training through CEAuthority for internet-savvy and time-conscious agents
- Smart Start™ internal brokerages to help new producers learn the ropes
- Express Markets™ to help your new agents earn 100 percent commissions with low or no production requirements
- Agency Network